Modeling Accuracy of Promised Ship Date and IT Costs in a Supply Chain

2010 ◽  
pp. 1-15
Author(s):  
Young M. Lee
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Business Environment ◽  
Management Process ◽  
Refresh Rate ◽  
It Systems ◽  
Availability Management ◽  
Customer Service Level ◽  
Modeling Accuracy

In the current dynamic, competitive business environment, customers expect to see products they purchase to be shipped on the date it is promised. However, accurate calculation of promised ship date by suppliers can only be obtained at expense of corporate IT systems that provide accurate availability data. Our study indicates that refresh frequency of availability data in IT system substantially impacts accuracy of the ship date that is promised to customer. The value of customer service level corresponding to accuracy of promised ship date needs to be estimated against the costs of having necessary IT system. The estimation requires a simulation model of availability management process. In this paper, we describe how to model and simulate the availability management process, and quantify the customer service level resulting from various availability refresh rate.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Risk Management in Supply Chain Management: Case Study of a Brazilian Automotive Distribution Process

2015 ◽  
Vol 7 (5) ◽  
pp. 109 ◽  
Author(s):  
Diego A Wolfs ◽  
Franco Takakura ◽  
Maysa Rezende ◽  
Mauro Vivaldini ◽  
Pedro Domingos Antoniolli
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Service ◽  
Product Distribution ◽  
Service Level ◽  
Added Value ◽  
Chain Management ◽  
Customer Service Level ◽  
Distribution Process ◽  
Management Case Study

<p>Globalisation requires from companies greater flexibility and adaptability of its internal processes, to allow them be aligned to market requirements. This flexibility results in new forms of relationships between partners, supply chains. For these chains differentiate themselves from their competitors, they should add value to products and services that they deliver to the end customer, while being profitable from the standpoint of its processes and operations. In this sense, would be needed effective supply chain management, which is constituted by collaboration and cooperation among partners, strategic and processes integration, to result in a profitable operation, and products and services with added value to the customer. Additionally, because logistics is a key element for the integration and collaboration among SC members, and due the fact that, depending of the scope of these chains, there are potentially more risks happening, which may have negative impacts on the customer service level, and consequently, loss of effectiveness of their logistics processes. This study aims to analyze the risks in a product distribution process in the Brazilian automotive sector, considering the operations performed by a logistics operator of this automaker.</p><strong>Keywords: </strong>Automotive Industry; Logistics Operator; Supply Chain; Supply Chain Management; Risks Management.

scholarly journals An Agent-Based Model Driven Decision Support System for Reactive Aggregate Production Scheduling in the Green Coffee Supply Chain

2019 ◽  
Vol 9 (22) ◽  
pp. 4903
Author(s):  
María Pérez-Salazar ◽  
Alberto Aguilar-Lasserre ◽  
Miguel Cedillo-Campos ◽  
Rubén Posada-Gómez ◽  
Marco del Moral-Argumedo ◽  
...  
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Customer Service ◽  
Service Level ◽  
Production Plan ◽  
Agent Based ◽  
Model Driven ◽  
Demand Pattern ◽  
Customer Service Level ◽  
Demand Patterns

The aim of this paper is to contribute to the thread of research regarding the need for logistic systems for planning and scheduling/rescheduling within the agro-industry. To this end, an agent-based model driven decision support system for the agri-food supply chain is presented. Inputs in this research are taken from a case example of a Mexican green coffee supply chain. In this context, the decision support agent serves the purposes of deriving useful knowledge to accomplish (i) the decision regarding the estimation of Cherry coffee yield obtained at the coffee plantation, and the Parchment coffee sample verification decision, using fuzzy logic involving an inference engine with IF-THEN type rules; (ii) the production plan establishment decision, using a decision-making rule approach based upon the coupling of IF-THEN fuzzy inference rules and equation-based representation by means of mixed integer programming with the aim to maximize customer service level; and (iii) the production plan update decision using mathematical equations once the customer service level falls below the expected level. Three scenarios of demand patterns were considered to conduct the experiments: increasing, unimodal and decreasing. We found that the input inventory and output inventory vary similar over time for the unimodal demand pattern, not the case for both the increasing and decreasing demand patterns. For the decreasing demand pattern, ten tardy orders for the initial production schedule, an 88% service level, and nineteen tardy orders from the estimated production results, a 77% service level. This value falls below the expected level. Consequently, the updated aggregate production schedule resulted in ten tardy orders and an 88% service level.

Optimizing Service Parts Inventory in a Multiechelon, Multi-Item Supply Chain with Time-Based Customer Service-Level Agreements

2007 ◽  
Vol 55 (2) ◽  
pp. 303-318 ◽  
Author(s):  
Kathryn E. Caggiano ◽  
Peter L. Jackson ◽  
John A. Muckstadt ◽  
James A. Rappold
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Service Level Agreements ◽  
Service Parts ◽  
Customer Service Level

scholarly journals Socially concerned periodic review replenishment system with customer service level and supply chain contracting

2021 ◽  
Author(s):  
Maryam Johari ◽  
Seyyed-Mahdi Hosseini-Motlagh ◽  
Mohammadreza Nematollahi ◽  
Mark Goh ◽  
Joshua Ignatius
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Customer Service ◽  
Demand Uncertainty ◽  
Service Level ◽  
Benefit Sharing ◽  
Periodic Review ◽  
Customer Service Level ◽  
Sharing Strategy ◽  
Supply Chain Contracting

This study contributes to the periodic review inventory system literature by: (1) investigating customer service level (CSL) as a social responsibility in pharmaceutical supply chains (PSCs) and (2) proposing supply chain contracting to achieve win-win coordination and guarantee a satisfied CSL. Specifically, considering the demand uncertainty as one of the main challenges faced by pharmacies, we analyze how applying contracts to coordinate the inventory policy of a pharmacy with that of its supplier can affect their profits and the CSL offered to society. Having shown the advantages of the centralization compared to the decentralization, we design a coordination scheme based on the quantity discount contract to encourage the players move towards centralization. Under the proposed scheme, we first obtain the minimum and maximum acceptable amounts of discount from each actor’s viewpoint. Then, we propose a benefit-sharing strategy in order to make the plan interesting to both sides. The proposed discount contract and benefit-sharing strategy distribute the extra profits equitably between the two participants according to their bargaining power, which can make a win-win condition for two actors. Our results suggest that coordinating review period and order-up-to-level of the retailer and replenishment multiplier of the supplier will be of benefit in terms of both economic profitability and social responsibility.

Investigating the value of reducing errors in inventory information from a supply chain perspective

Kybernetes ◽  
2015 ◽  
Vol 44 (2) ◽  
pp. 176-185 ◽  
Author(s):  
Kazim Sari
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Lead Time ◽  
Service Level ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
Useful Knowledge ◽  
Lead Time Reduction ◽  
Customer Service Level ◽  
Time Reduction

Purpose – The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing errors in inventory information are compared with those of lead time reduction and supply chain collaboration. Design/methodology/approach – A simulation model is constructed to perform the analysis. Findings – Results show that lead time reduction is the most important strategy for a supply chain in reducing total supply chain cost. In terms of customer service level, on the other hand, strategy of reducing errors in inventory information is observed as the most considerable strategy. However, the results for supply chain collaboration are somewhat unexpected. Namely, in spite of its popularity, supply chain collaboration provides very limited contribution to the supply chain. Practical implications – This research provides useful knowledge for the managers of a business enterprise in prioritizing various supply chain strategies. Originality/value – In supply chain management literature, greater emphasis is given to lead time reduction and supply chain collaboration than dealing with errors in inventory information. This research makes it clear that errors in inventory information should not be underestimated.

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